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Don’t let inertia cost you money?

According to an announcement from Citizens Advice, loyal customers who stay with their current suppliers, often due to inertia are losing up to £4.1bn a year.

Citizens Advice made a super-complaint stating that this scam is causing losses amounting to an average of £877 per person with the elderly and more vulnerable people in society bearing the brunt of the losses.

Thankfully, it is now being investigated on behalf of consumers by The Competition and Markets Authority (CMA).

Gillian Guy, chief executive of Citizens Advice, said: “It’s completely unacceptable that consumers are still being ripped off for being loyal to companies they rely on every single day.

The main areas where consumers are being ripped off for showing loyalty are:

  • Savings accounts
  • Mortgages
  • Household insurance
  • Mobile phone contracts
  • Broadband contracts

This has also come to the notice of the Financial Conduct Authority (FCA).

The FCA regulates most types of mortgages and insurance in the UK and has stated they have been concerned by the issue for a long time.

The FCA’s chief executive, Andrew Bailey said, “We expect firms to look after the interests of all customers and treat them fairly, whether they are new or long-standing.”

So what should you do? Easy! Make sure you use an adviser who can look across the market and find the best deal for you – rather than just going direct to the companies who provide the product.

Using an adviser means they will be able to undertake regular reviews to ensure your deal is as good as it can be. An adviser’s job is to keep a constant eye on both the mortgage and the insurance markets to ensure you get the best rates and the best arrangements available at the time.

Cherry never recommends the products or services of other companies

Published: 18 July 2019